Which of the following is the best description of fiat money?
A) Coins made of gold and silver.
B) Paper money that can be redeemed for gold or silver.
C) Legal tender that has no intrinsic value.
D) Cheque accounts and debit cards.

Question

Quizplus · Accepted Answer

Fiat money is legal tender that does not have any intrinsic value. It is not backed by a physical commodity such as gold or silver, but instead has value because it is declared by a government to be acceptable as a means of payment. Option A refers to commodity money, while option B is representative money. Option D refers to electronic forms of payment that are backed by fiat currencies.

Which of the Following Is the Best Description of Fiat